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Crude Oil Drops as US Drillers Add Rigs

Crude oil was attempting to rise today, extending yesterday’s gains, but it currently dropped, demonstrating significant losses. Baker Hughes reported that US drillers added 21 rigs last week even if face of collapsing oil prices. The news followed the report on Wednesday that showed an unexpected increase of US oil reserves and pushed prices for WTI crude below the $50 level.

Of course, signs of economic slowdown around the world were also affecting crude negatively. Fuel and energy consumption is tied to economic growth, and worsening economic conditions mean smaller demand for the commodity, and this in turn leads to lower prices.

Futures for WTI crude oil dropped 0.85 percent to $48.04 per barrel as of 19:36 GMT on NYMEX. Contract for Brent crude declined 1.16 percent to $54.63 per barrel on ICE.
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